How to use UAE Gratuity Calculator
- Enter your last basic monthly salary in dirhams, without allowances.
- Enter your first and last working days, and any days of unpaid leave or absence.
- Read the gratuity and the breakdown for the first five years and the years after.
- If your employer works out the daily wage as basic × 12 ÷ 365, switch that option on to compare.
Why use UAE Gratuity Calculator
Article 51 formula
21 days’ basic salary per year for the first five years and 30 days per year after that.
Two-year cap
The total never exceeds two years’ basic salary, as the law requires.
Unpaid leave
Days without pay are taken out of your service.
Resignation
Under the 2021 law, resigning does not reduce the gratuity.
About this tool
Federal Decree-Law No. 33 of 2021, which replaced the 1980 labour law in February 2022, gives foreign workers in full-time jobs an end-of-service gratuity once they complete one year of continuous service. Article 51 sets it at 21 days’ basic wage for each of the first five years and 30 days’ basic wage for each year after that, with part years paid in proportion. Days of unpaid absence do not count, and the total cannot exceed two years’ wage. UAE nationals are covered by the pensions and social security law instead, and the DIFC and ADGM free zones have their own employment laws.
The calculation uses the last basic wage, which excludes allowances and benefits in kind. Most calculators, including this one, turn the monthly basic salary into a daily wage by dividing by 30. Some employers use basic × 12 ÷ 365, which gives about 1.4% less, so that option is here to compare. Employers may deduct amounts you owe by law or court order, and some use an approved alternative savings scheme instead of gratuity.
Frequently asked questions
How is gratuity calculated in the UAE?
Daily basic wage × 21 days for each of the first five years, plus daily basic wage × 30 days for each year after that, with part years in proportion. The total is capped at two years’ basic salary (Article 51 of Federal Decree-Law No. 33 of 2021).
Does resigning reduce my gratuity?
Not under the current law. The reductions for resignation belonged to the old 1980 labour law. Under the 2021 law you receive the same gratuity whether you resign or your employer ends the contract, once you have a year of continuous service.
Is gratuity paid for less than one year?
No. You need one year of continuous service. After that, months and days beyond your last full year are paid in proportion.
Which salary is used?
Your last basic salary as written in your contract. Housing, transport and other allowances are not included.
Does unpaid leave count as service?
No. Article 51 says days of absence without pay are not counted, so enter them in the unpaid leave box.